Why should my unit trust investments match my risk profile?
Your risk profile determines the amount of risk you can tolerate. Generally younger people can take on more risk as they have a longer period of time to reap the associated rewards. And vice versa for older investors. Unit trust funds vary from conservative risk funds to aggressive high risk funds. Low risk funds will have a low volatility in the fund price and the high risk funds will have a higher volatility in the fund price.
This volatility can be unsettling for some investors and may take far longer than expected to reap ones desired returns from a higher risk fund. It is thus very important to establish exactly what your personal risk profile is before investing into a unit trust. Your risk profile then needs to be matched to the appropriate unit trust.
How we select top performing unit trusts
Our portfolio of funds selected per risk profile category is based partly on historical performance, but mostly on selecting the best quality fund management companies and individuals who we believe should outperform their peers in the long-term.
We have a neutral investment style bias, which means we believe in a flexible approach that appreciates both value and growth.
Our selections are marginally influenced by our view of the stock market’s performance over the next year. Currently, we believe there is a higher chance of the stock market
underperforming inflation over the next year, which leads us to a more defensive stance in our current selections.
We select firms that brand their process above individuals, firms that have responsible staff incentive schemes in place. Teams that have strong fundamental research backgrounds, unwavering discipline in following process and unemotional decision making individuals who are passionate about financial markets.
We believe that our best advice methodology of selecting a portfolio of three to four unit trust funds from a base of premium branded funds ensures that Investonline.co.za clients have a competitive advantage over the alternative investment routes available. Furthermore, we are confident that the nature of our advice is independent.
Sample Risk Profiler Report
Receive your risk profile report, a recommended portfolio of unit trusts,
real past performance & projected returns.
Why Complete a Risk Profiler?
- We match the top performing unit trusts to your investment needs based on your investment profile.
- We offer tailored premium portfolios selected from the best performing unit trusts in South Africa.
- We ensure independent investment advice on all unit trust investments.
- Unit trust funds are selected from Allan Gray, Coronation, Foord, Investec, Nedgroup and other top fund managers.
What our clients say
“Even as a sophisticated investor, I believe it’s important to have an advisor like InvestOnline”
~ Martin Versfeld
“I should have started with Investonline many years ago!”
~ Hugh Tucker
“I feel empowered that I am able to understand my finances better”
~ Lindsay Foaden